All categories

3 years ago

Vin Diesel owns the Fredonia Barber Shop.

Business

1 answer:

maks197457 [2]3 years ago

8 0

Answer:

(a) $5; $7,000

(b) 1,400 haircuts ; $ 14,000

(c) $1,000.

Explanation:

Barber's base rate (4 × 1,250) = $5,000

Total Fixed cost (TFC):

= Barber's base rate + Manager's salary + Advertising + Rent + Utilities + Magazines

= $5,000 + $500 + $200 + $1,100 + $175 + $25

= $7,000

(a) Variable cost per hair cut = 4.50 + 0.20 + 0.30

= $5

Contribution margin per unit = 10 - 5

= $5

(b) Break-even point in units:

= Total fixed cost ÷ contribution margin per unit

= 7,000 ÷ 5

= 1,400 haircuts

Break-even point in dollars = 1,400 × 10

= $ 14,000

Net income = (No. of haircuts × Contribution margin per unit) - TFC

= (1,600 × 5 ) - 7,000

= $1,000.

You might be interested in

Beige Corporation, a C corporation, purchases a warehouse on August 1, 2007, for $1 million. Straight-line depreciation is taken

olchik [2.2K]

Answer and Explanation:

The computation of the amount and character of the gain recorded is shown below:

1. Recognized gain would be

= Sales - the cost of the property - recovery cost

= $1,200,000 - $1,000,000 - $411,750

= $611,750

2. Now as per the section 1245 the potential recapture is $411,750

3. Now extra section 291 ordinary income in the case when it is a corporation

= $411,750 ×20%

= $82,350

4. And finally $82,350 would be considered as an ordinary income under section 291 while the remaining balance i.e.

= $611,750 - $82,350

= $529,400

This amount would be considered as a gain under section 1231

5 0

3 years ago

Under the gold standard, gold flows reduce the money supply in one nation when another nation experiences a trade surplus. The n

goldfiish [28.3K]

Answer:

The lower prices create more demand for product from the nation with a reduction in the money supply, which leads to International Balance of Statement Differences

Explanation:

Gold standard is a monetary stem that links the value of paper money to gold.This system were used to balance income differences between countries. Countries with a balance of payments surplus would receive gold inflows, while countries in deficit would experience an outflow of gold

Here, Gold is the standard for International balance of payments differences.

Under the gold standard, gold flows reduce the money supply in one nation when another nation experiences a trade surplus.

The nation with a trade surplus has a swell in the money supply, which leads to price increases. At the same time, the nation with a reduction in the money supply will cause prices to fall.

The lower prices create more demand for product from the nation with a reduction in the money supply, which leads to International Balance of Statement Differences.

6 0

3 years ago

The project will require an investment of $10,000 in new equipment. the equipment will have no salvage value at the end of the p

maks197457 [2]

Answer:

The answer is attached

Explanation:

Download xlsx

4 0

3 years ago

A 25-year-old engineer is opening an individual retirement account (IRA) at a bank. Her goal is to accumulate $1 million in the

dimaraw [331]

Answer:

The minimum deposit will be of 3,081 and after 40 year it will get 1,000,000 dollars

Explanation:

We have to solve for the C of an annuity growing

$\frac{1-(1+g)^{n}\times (1+r)^{-n} }{r - g}$

g 0.05

r 0.06

C 3,081

n 40

$C \frac{1-(1+0.05)^{40}\times (1+0.06)^{40} }{0.06-0.05} = 1,000,000$

$C \times 324.57 = 1,000,000$

$C = 1,000,000/ 324.57 = 3,081$

8 0

3 years ago

Howard wants to buy a commercial building but does not have enough cash. He decides to bring in partners to help fund the equity

damaskus [11]

Answer:

Venture Capital

Venture capital is the type of partnership in which two or more than two firm or people invest in a project or assets that has higher tendency of returns payback.

5 0

3 years ago